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					UCSF
STIP Overview
                Controller’s Office
                November, 2010




                                               1
STIP Overview                     November, 2010
Agenda

    What is STIP?
    STIP Distribution Process Overview
    STIP for Gift and Endowments
    STIP for Fund Balance
    STIP Distribution Exceptions
    STIP AFP Attributes
    STIP Weblinks example


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STIP Overview                             November, 2010
Introduction

 The Short Term Investment Pool (STIP) is an investment pool
 consisting of assets remaining in the Regents’ central bank
 accounts after disbursements, which are invested by the
 Treasurer of The Regents in short-term investments.

 Funds available for current expenditures residing in campus funds
 maintained by The Regents are part of STIP and all campuses
 participate in the distribution of STIP income. STIP income
 earned is distributed at the end of each quarter to each of the
 campuses.




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STIP Overview                                                November, 2010
STIP Categories
Group I: University-wide basis funds
   State Appropriations, State Agencies, and Educational Fee funds.

Group II: Private gift, grant and endowment funds
   Plant Gift, Restricted and Unrestricted Gifts, Grants, and Contracts,
   Clinical Trials, and Endowment Income funds

Group III: Medical compensation plans and hospital funds
   Medical compensation plan, Plant Hospital and School of Medicine,
   Professional Fees, and Hospital funds.

Group IV: Federal funds
   Federal Plant and Federal Grants and Contract funds.

Group V: Campus unrestricted funds
   Agency, Student Fees, Local Government Grants and Contracts, Sales &
   Services, Other Sources, Auxiliary Enterprise, and Reserves Funds.


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STIP Overview                                                         November, 2010
UCOP Distribution

 About two months after the end of each quarter a file is received from
 UCOP containing the STIP distribution for that quarter. The file is
 converted into a format readable by the Campus PeopleSoft system and
 loaded into the General Ledger. Once the UCOP file has been posted in
 PeopleSoft the Campus distribution takes place.




                                                                             5
STIP Overview                                                     November, 2010
Distribution Process
Once the Final Quarterly STIP Earnings for the Campus are
determined they must be appropriately distributed. STIP is
ultimately posted to various general ledger accounts via the
following processes:


    UCOP distribution (file received directly from UCOP)

    UCSF distribution (UCSF STIP Program)

    Foundation distribution (manual entries done by Foundation)

    Special Medical Center distribution (done by Med Center)




                                                                              6
STIP Overview                                                      November, 2010
Campus Distribution

 The Campus distribution process is done on a quarterly basis. The
 quarterly periods are three months with the exception of the 4th quarter.

 The 4th quarter uses only April and May balances (Period 10 and Period
 11) for calculating STIP. This is because June balances are not final
 until the end of July, so the Office of the President and the campus do
 not use the June financial fund balance for calculating STIP at the fund
 level.

 The interest generated by the June financial fund balance is used by the
 Office of the President in calculating the campus total earnings and STIP
 rate, so nothing is lost to the campus or departments in this process.




                                                                                 7
STIP Overview                                                         November, 2010
Journal Identification

 Three journals are generated as part of the STIP process:
 xxD97          Financial STIP distribution generated by Office of the
                President. Journal line entries will be in the form “STIP Income
                Q#”. The # signifies the period.
 xxD97A         Financial STIP distribution generated by the campus
                STIP program for all “Other” interest earning funds. This
                journal also includes the Gift and Endowment assessment
                made from those funds. Journal line entries will be in the form
                STIP PERIODS x TO y: zzzzz where x and y are the periods
                and zzzzz is the originating fund number.
                NOTE: The offset entries generated during the Financial STIP distribution do not have
                individual entries. Instead they are grouped together by Program Code and NCA in fund
                69997.

 xxD97B         Budget STIP distribution generated by the campus STIP
                program for all funds that earn STIP. Journal line entries
                will be in the form STIP PERIODS x TO y: zzzzz where x
                and y are the periods and zzzzz is the originating fund
                number.
                                                                                                             8
STIP Overview                                                                                     November, 2010
STIP Assessments and Fund Balance Definitions

 There are two types of Campus level STIP distribution:

    STIP assessment on Gifts and Endowments per UCSF
     Administrative Policy 250-10, Section III.B

    STIP assessment based on financial fund balances as calculated by
     the UCSF STIP program per UCSF Administrative Policy 300-35
     Short Term Investment Pool (STIP)

    For non-sponsored funds, fund balance is the total of unexpended
     balance + revenue - expenses for each period. In all formulas that
     follow, (Period# Balance) refers to the result of this calculation which
     can be derived from the WebLinks Fund Summary by Fund Report

    For sponsored funds, the fund balance includes the Fund Summary
     by Fund Balance - Deferred Revenue + Accounts Receivable +
     Unbilled AR. To find these amounts run the Weblinks Balance
     Sheet Summary by NCA for the fund in question.
                                                                                    9
STIP Overview                                                            November, 2010
Gift & Endowments Assessment

 It is University policy that STIP income on Gift and Endowment current
 funds held by either The Regents or the UCSF Foundation will be
 credited directly the Development Office’s fund 69943.

 Gift and Endowment funds should not have deficit balances and cannot
 be charged STIP expense. Any STIP expense accrued on a Gift or
 Endowment fund is charged to the department’s designated 6XXXX
 discretionary fund.




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STIP Overview                                                       November, 2010
Gift and Endowment Funds

 Fund Range      UCOP Fund Group   Description

 13000 -13999    407100            Endowment Income

 34100 – 39599   407100            Endowment Income

 39600 – 59999   408200            Private Gifts

 80000 – 80999   408200            Private Gifts




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STIP Overview                                      November, 2010
Fund Balance Assessment

 For the remaining funds eligible for STIP, the average financial fund
 balance is used to determine distribution as based on the schools
 requirements.

 For the first three quarters of the fiscal year, the ending financial fund
 balance for each month of the quarter is summed together and divided
 by three. For the fourth quarter of the fiscal year the ending financial
 fund balance for April and May are summed together and divided by
 two. The result is the average quarterly financial fund balance used to
 calculate STIP.

    Funds with a surplus average quarterly financial fund balance of
     $1,000 or more receive STIP Income.

    Funds with a deficit average quarterly financial fund balance of
     ($1,000) or more receive STIP Expense.


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STIP Overview                                                            November, 2010
Group 3 and 5 funds
Fund Range      UCOP Fund Group   Description

20000 – 20399   403XXX            Student Fees

60000 – 65999   409XXX            S & S-Educational

66000 – 69999   410XXX            S & S-Other

70000 – 70999   409300            S & S-Auxiliaries

75000 – 75999   411100            Reserves

76000 – 76999   411200            Reserves- R & R




                                                            13
STIP Overview                                     November, 2010
Fund Balance Assessment Non-Sponsored Funds


    Calculate the average fund balance for the fund:

            (Period 1 Total)  (Period 2 Total)  (Period 3 Total)
                             Number of Periods                    
                                                                    


    Calculate the STIP amount using the following formula:

                  average fund balance  Stip rate
                                    4




                                                                                   14
STIP Overview                                                            November, 2010
Fund Balance Assessment Example Fund 66329

STIP rate received from OP = 2.2115% (Q3-FY10)

    Period 1 = -191,511.31
    Period 2 = -207,052.82
    Period 3 = -163,285.92
    Sum of Periods 1, 2, 3 = -561,850.05



Average Fund Balance =
                             561,850 .05 
                                             = -187,283.35
                                  3       


STIP Amount =       187,283.35  .022115
                                          = -1,035.44
                             4


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STIP Overview                                                  November, 2010
Group 2 Sponsored Funds (Fund Balance – Deferred
Revenue + Accounts Receivable + Unbilled Accounts
Receivable)


Fund Range        UCOP Fund Group    Description
15000 - 15999     408300             Private Grants
57000 - 58999
73000 - 73999
81000 - 81999
85000 - 86999

12000 - 12099     408410             Private Contracts
59000 - 59998
71000 - 72999
82000 - 84999

74300 – 74899     408420             Clinical Trials
77000 - 79998




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STIP Overview                                          November, 2010
      Fund Balance Assessment with Deferred Revenue,
      Accounts Receivable, and Unbilled Accounts Receivable

     Calculate the average fund balance for the fund:

 (Period 1 Total)  (Period 2 Total)  (Period 3 Total)                         
 (Period 1 DR  AR  UAR)  (Period 2 DR  AR  UAR)  (Period 3 DR  AR  UAR) 
                                                                                  
                                     Number of Periods                          
                                                                                  
                                                                                  


     Calculate the STIP amount using the following formula:
                      average fund balance  Stip rate
                                       4




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      STIP Overview                                                         November, 2010
Fund Balance Assessment Example Fund 71000

STIP rate received from OP = 2.2115% (Q3-FY10)

                Fund Bal Def Rev        AR             UAR
    Period 1 = 76,691.27 -99,120.00 + 99,120.00 +       0.01
    Period 2 =      0.00 -20,899.11 +      0.00 +       0.00
    Period 3 =      0.00 -18,305.80 +      0.00 +       0.00
    Sum of Periods 1, 2, 3 = 37,486.37

                             37 ,486 .37 
                            
                                  3       = 12,495.46
                                          
Average Fund Balance =


STIP Amount =      12,495.46  .022115
                                             = 69.08
                            4


                                                                         18
STIP Overview                                                  November, 2010
Two NCA Rule Example Fund 15071

 STIP rate received from OP = 2.2115% (Q3-FY10)
 IC_Rate for fund = .0125
    Period 1 = -70,795.51 – 1,723,712.16
    Period 2 = -81.447.98 – 2,071,423.45
    Period 3 = -81,447.98 – 1,874,019.22
    Sum of Periods 1, 2, 3 = -5,902,846.30

 Average Fund Balance =   5,902 ,846 .30  = -1,967,615.43
                          
                                 3        
                                           
                1,967,615.43  .022115
 STIP amount =                                = -10,878.45
                           4
                                      10 ,878 .45
 STIP Amount for NCA 433040 =                           = -9,669.73
                                        1  .125
                                              10,878.45 
 STIP Amount for NCA 490000 =                1  .125 
                               10,878.45               
                                                            = -1,208.72
                                                         
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STIP Overview                                                         November, 2010
Distribution Exceptions

 Federal Flow-Throughs

    Although subject to federal rules and regulations, federal flow-
     throughs are categorized as private contracts. Expenses must post
     to the general ledger before the Controller’s Office can bill, so the
     funds are usually in deficit and incur negative STIP. Negative STIP
     cannot be charged to the fund because Federal rules apply.

    Federal flow-through funds are identified by a value of 3, 6, or 7 in the
     Fed Flow Thru field of the Account Fund Profile (AFP). A Federal
     Flow Thru-STIP Clearing Fund (84000) has been designated as the
     fund where all Federal Flow Through STIP will go. After STIP is
     posted each quarter, a manual adjustment is made to move the
     Federal Flow Through funds to the Chancellor’s STIP Clearing
     account (69997). The STIP ID for all Federal Flow Through funds
     should be 84000F




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STIP Overview                                                           November, 2010
Distribution Exceptions

Cost Reimbursement Private Contracts, Grants and Clinical Trials

   Cost reimbursement funds are those with a federal flow through code
    not equal 3, 6 or 7 and with a payment method of 10, 20, 50 or 95.

   By definition, expenses must post to the general ledger before the
    Controller’s Office can bill so these funds are usually in deficit and
    incur negative STIP.

   Since this is beyond the department’s control, the Chancellor absorbs
    all STIP on cost reimbursement funds.




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STIP Overview                                                            November, 2010
Distribution Exceptions

 Special Handling

    There were several manual journals entries entered by the
     Controller’s Office each quarter to handle special cases.
     These journal entries were for Pro Fee funds with receivables
     associated with them, self-supporting operations assessed an
     inventory STIP, Valencia PEDS, and STIP Dialysis. The
     journal entries are now automated as part of the UCSF STIP
     program.

    These funds have STIP calculated and distributed as
     described in Campus Distribution. The difference between
     these funds and other funds is the average fund balance is
     derived solely from particular balance sheet NCAs rather than
     fund numbers, and the STIP is distributed to specific funds.



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STIP Overview                                                 November, 2010
Distribution Exceptions

 Foundation STIP

    Foundation STIP is calculated in the same way as it is for the
     Regents. However, all Foundation STIP entries are done as manual
     entries by Foundation Accounting.

 Medical Center STIP

    On a quarterly basis UCOP sends a report to the Medical Center
     detailing the STIP income each campus has earned. The calculation
     of the Medical Center STIP is independent of the STIP process the
     Campus undergoes.




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STIP Overview                                                     November, 2010
STIP AFP Attributes
Stip Id
The Stip Id is a fund number with an “Alpha” character as the last digit.
This is a parameter used by the STIP program to help determine where a
fund’s STIP should be placed. Every fund should have a Stip Id defined
for it in the AFP. The alpha characters are defined as follows:
W (Group I – University-Wide)
G (Group II – Gifts, Private Grants, & Endowments)
M (Group III – Medical Center Comp Plans)
H (Group III – Hospital Funds)
F (Group IV – Federal Funds)
C (Group V – Campus Unrestricted Funds)
P (Plant Funds)
L (Loan Funds)
X (Do not process)




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STIP Overview                                                       November, 2010
STIP AFP Attributes
 Stip ACCT

 This refers to the DPA to be used when creating journal entries for each
 fund. The DPA MUST be coupled to the fund. It is also important to
 note when the STIP is going to the fund designated in the Stip ID, the
 Stip Acct of the Stip Id fund will be used.

 Fed Flow Thru

 As mentioned previously in Federal Flow-Through Funds, those funds
 with a Fed Flow Thru value of 3, 6, or 7 are handled differently than other
 funds.

 Pmt Method

 As mentioned previously in Cost Reimbursement Funds, those funds
 with a federal flow through code not equal 3, 6 or 7 and with a payment
 method of 10, 20, 50 or 95 have their STIP absorbed by the Chancellor.

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STIP Overview                                                         November, 2010
STIP Program Driving Tables

 As the STIP program is running, it uses driving tables to determine how
 each applicable fund is to be processed. The three driving tables are for:

    Actuals journal entries

    Budgets journal entries

    Journal entries for special cases using NCAs rather than funds.

 The Actuals and Budgets driving tables use the Fund UCOP Group
 Code of the fund to determine distribution, while the NCA driving table
 uses specific NCAs rather than Fund UCOP Group codes.




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STIP Overview                                                          November, 2010
STIP Program Driving Tables

 Two important columns to note in the driving tables are TARGET FUND
 and TARGET DPA.


  TARGET FUND contains the fund number to which STIP will
   be applied for each Fund UCOP Group Code. If the value in
   this column is STIPID then the STIP will be directed to the fund
   identified in the AFP parameter STIP ID for the fund. The alternate
   fund’s “target” and “source” parameters will then be used in the
   creation of the STIP journals.


  TARGET DPA works the same way. This column contains the
   DPA to which the STIP will be applied for each Fund UCOP
   Group Code. Used predominately for the BUDGETS journal,
   the value associated with this field is generally “STIPACCT”. If
   this value is present then the STIP Account associated with
   the TARGET FUND is used.

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STIP Overview                                                         November, 2010
   Driving Tables Example
   To illustrate this, fund 45304 will be used as an example. This fund has the
   AFP attributes of STIPID 60518G, STIPACCT 444918, and Fund UCOP
   Group Code 408200. The entries in the Actuals and Budgets driving tables
   for Fund UCOP Group Code is (not all fields are shown):


Actuals:
Group          STIP     Target   Target   Target   Target     Offset   Offset     Offset
Code     Bal   Rule     NCA      Fund     PgmCd    DPA        NCA      Fund       PgmCd
408200 CR      75       119800   SOURCE   X0799               119850   69943      X0799
408200 DR      CAMPUS   119850   STIPID   X0901               119850   69997      X0901

Budgets:
Group          STIP     Target   Target Target     Target     Offset   Offset     Offset
Code     Bal   Rule     NCA      Fund   PgmCd      DPA        NCA      Fund       PgmCd
408200 CR      75       433040   SOURCE            STIPACCT   119800   SOURCE
408200 DR      CAMPUS   433040   STIPID            STIPACCT   119850   STIPID




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   STIP Overview                                                                November, 2010
  Driving Tables Example
The STIP amount computed for Q3-07 on fund 45304 is a 608.73 debit. Using
the driving table entries above, the STIP will be distributed as follows:

Actuals:
   Dr. Fund Balance -     Fund 60518 NCA 119850 Pgm Cd X0901        608.73
       Cr. Fund Balance - Fund 69997 NCA 119850 Pgm Cd X0901        608.73

Budgets:
   Dr. Fund Balance -     Fund 60518 NCA 433040 DPA 404918          608.73
       Cr. Fund Balance - Fund 60518 NCA 119850                     608.73


In the above example the STIPID fund, 60518 and its’ AFP attributes for
Unexpended Balance and DPA were used.




                                                                               29
  STIP Overview                                                      November, 2010
Using Weblinks
Weblinks can be used to reconcile the STIP distribution for a particular fund by running
a Fund Summary by Fund and, for Group II sponsored funds, a Balance Sheet
Summary by NCA for each month of the quarter. However, there are a few things to
keep in mind when using Weblinks to determine average quarterly fund balance:

 Always use the Financial fund balance in the reconciliation. The Budget and the
  Balance columns are never used for STIP.
 Departmental access restrictions may affect the financial fund balance displayed
  by Weblinks. If this is the case, you will not be able to correctly reconcile the STIP
  distribution.
 Remember to use the correct months for the financial fund balances. For
  example, for the 1st quarter you must use the financial fund balances from July,
  August and September to get the Average Fund Balance.
 Remember to use only April and May for to get the financial fund balances for the
  4th quarter and to divide by 2 rather than 3 to get the average fund balance.
 You must get the financial fund balance for each month separately.
 Use the correct STIP rate provided by UCOP. STIP rates are located on the
  Controller’s Office website (http://controller.ucsf.edu/stip/files/STIP_Rates.pdf).


                                                                                          30
STIP Overview                                                                   November, 2010
Weblinks – AFP Fund Attributes




                                           31
STIP Overview                    November, 2010
Fund Balance

                 Remember to use the
                Financial fund balance




                                                   32
STIP Overview                            November, 2010
Deferred Revenue, Accounts Receivable, Unbilled AR Balance




                                                                   33
STIP Overview                                            November, 2010
 STIP Calculation & Distribution Example
The following example reflects the process used to determine the STIP
assessment for fund 60153 for the 3rd quarter of FY 2007:

   STIP rate received from OP = 4.2808%
   Financial fund balance in January = (505,361.00)
   Financial fund balance in February = (510,676.48)
   Financial fund balance in March = (510,676.48)
   Sum of three periods = (1,526,713.96)
   Average fund balance = (1,526,713.96)/3 = (508,904.65) ((neg) =
credit or surplus balance)
   Average fund balance <= (1,000) (Process only for funds in surplus
larger than or equal to $1,000)
   STIP amount = [(508,904.65) * .042808] / 4 = (5,446.30)


                                                                        34
 STIP Overview                                                November, 2010
STIP Calculation & Distribution Example
 In Weblinks the postings would look like this: (The Financial offset entry
 is not shown since it is not an individual entry.)




                                                                                 35
STIP Overview                                                          November, 2010
Two NCA Example
The following example reflects the process used to determine the STIP
assessment for fund 82667 for the 3rd quarter of FY 2007. This is a Private
Contract fund, has a non-zero IC Rate, and has a credit average fund balance
making it eligible for the Two NCA distribution:

  STIP rate received from OP = 4.2808%
  Fin fund bal and Defr’d Revenue in January = (95,690.72) + (44,038.37)
  Fin fund bal and Defr’d Revenue in February = (96,822.93) + (44,038.37)
  Fin fund bal and Defr’d Revenue in March = (96,811.57) + (44,038.37)
  Sum of three periods = (421,440.33)
  Average fund balance = (421,440.33)/3 = (140,480.11)
  Average fund balance <= (1,000)
  STIP amount = [(140,480.11) * .042808] / 4 = (1,503.42)

According to STIP DISTRIBUTION RULES for Group II funds, if STIP is a credit
the fund will receive the STIP, otherwise the STIP goes to the fund identified in the
STIP Id. In the case of fund 82667 the STIP is a credit so the fund receives the
STIP.


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STIP Overview                                                                  November, 2010
Two NCA Example




                            37
STIP Overview     November, 2010
References: http://controller.ucsf.edu/stip/stip.asp




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STIP Overview                                    November, 2010

				
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